Advertising: Business Figures in Costa Rica

The advertising services market is estimated at approximately $800 million and is made up of some 654 companies, of which 6 out of 10 already export their services, with their main markets being the U.S., Panama and Mexico.

Wednesday, July 17, 2019

Regarding the context in which the business is developed, a study prepared by Promotora del Comercio Exterior (Procomer) explains that the national market has been influenced by the entry of international agencies affiliated to existing national agencies (under annual fee payment models, franchise, total acquisition or shareholding). Other companies have entered through their offshoring model.

The document states that 95% of the companies are concentrated in the Central region, in San José (Central cantons, Escazú, Montes de Oca and Santa Ana). Although micro-enterprises represent 74% of the business park, they only contribute 12% to employment. Medium-size companies employ 27% and large companies 53%. 87% of the companies are mostly Costa Rican capital and those with mostly foreign capital are large, some of which are operating under the free zone regime. Almost half of the companies have been operating in the market for more than 10 years, where the youngest are the smallest.

The study reviews that 6 out of 10 companies declare to have exported their services from their office in Costa Rica regardless of differences in size and structure and 12% have sold locally, but the content is consumed outside of Costa Rica. There is no conditioner either by size, age or location to be considered an exporting company, where even freelancers export. Despite this, exports are still a weak process, as almost half (47%) declare that they export less than or 10% of what they invoice.

Concerning the foreign sales of the companies, it is explained that "... USA (35%), Panama (17%) and Mexico (16%) are the 3 main export destinations. At the regional level, 38% of companies have exported to Central America and 31% to North America. The United States and Central American countries (mainly Guatemala) are the main markets to which the services of companies that are not direct exporters, and their content has left the country. 56% of companies’ state interest in exporting to North America (USA and Mexico). From Central America: Panama appears as preferred, from South America: Colombia and from Europe: Spain. In addition, 17% of the companies have subsidiaries abroad, of which 75% are in Central America."

Download full study (in Spanish).

¿Busca soluciones de inteligencia comercial para su empresa?

Do you need to keep track of the key economic indicators in Central America?

Request more information about our Regional Economic Monitor.

this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423

More on this topic

How to Reach Centennials?

December 2020

Because more than half of consumers born between 1996 and 2012, known as "Generation Z" or "Centennials", are immune to traditional advertising and television, brands and companies should focus on communicating with this group through digital channels, such as social networks and influencers.

Positioning a brand, product or service is currently a challenge for advertising agencies and companies, as they must overcome the challenge of communicating effectively with younger consumers.

Digital Marketing: How to Reach Customers?

August 2020

Understanding the socio-demographic characteristics of the ideal client, as well as knowing their interests, desires, motivations and challenges, is fundamental for reaching the consumers of this new commercial normality in the digital environment.

The health crisis, quarantines and social distancing measures in the countries of the region, forced individuals and companies to accelerate the adoption of new technologies, which caused the digital to become the center of all interactions.

Advertising: New Times, New Strategies

July 2020

Reduction in advertising and marketing budgets in companies and an increase in the preference for investment in television campaigns are part of the changes that are being reported in the context of the new commercial reality.

Radical changes in the ways people relate to each other, new consumer habits and the home confinement decreed by the pandemic have led to a transformation in the advertising sector.

Honduras and the Advertising Business

March 2018

The union of advertising agencies has reported that in 2017 they generated revenues of $443 million, of which $35 million corresponded to digital advertising.

According to figures from the Associated Advertising Agencies of Honduras (Apha), the $35 million invested in digital advertising in 2017 made this line of business represent the third largest revenue generating factor for the agencies, surpassing investments made in radio media, which were estimated at $19 million.